New Hampshire State Budget o o o 24

New Hampshire State Budget o o o 24 month budget 2 one year components Balanced Budget law July 1 – June 30 Fiscal Year Capital and Operating separate 1

Balanced Budget Law o o o RSA 9: 8 -B Each fund must be balanced Expenditures for biennium balanced by n n o Estimated revenue Money remaining from prior biennium Bonding (debt) prohibited for “operating expenditures” 2

New Hampshire Operating Budget State Operating Budget Tax Revenues: Federal Funds • General Fund • Education Fund Other funds: • Highway • Turnpike • Fish and Game • “Other Funds” 3

Education Trust Fund o o o o Created in 1998 Response to Claremont case Transparency re: tax increases Not a real trust fund Transfers to and from General fund Statewide Property Tax Separate or Combined? 4

General and Education Revenues o o o Combined to Balance as if one fund Diverse basket – 10 sources 81% FY 2008 - $1, 980 M (2343 -363) Business combined $611 M – 31% Meals and Rooms; Tobacco; Liquor; Int/Div; RETT; Insurance; Communications, Lottery Medicaid “enhancement” 5

Unrestricted revenue: $1, 980 M o o o Business Taxes - $611 – 30. 8% Meals and Rooms - $214 – 10. 8% Tobacco - $164. 3 – 8. 3% Liquor - $133. 1 – 6. 7% I & D - $117. 6 – 5. 9% Real Estate Transfer – $116. 3 – 5. 9% Insurance – $95. 9 – 4. 8% Communications - $79. 8 – 4. 0% Lottery - $75. 5 – 3. 8% Medicaid Enhancement - $111. 7 – 5. 6% Other: Court fees, securities revenue, utility taxes, utility state property tax, beer tax, racing, tobac. settlement 6

Spending o o Education: Trust fund ($897 m) plus Operating Budget – 6 Categories n n n o General Government - $337 M - 21. 5% Justice $251 M – 16% Resources $47 M – 3% Transportation $1 M – 0. 1% (highway, turnpike funds) Health and Social $690 M - 44% Education $237 – 15% (plus education fund) What is a PAU? 7

What the Budget Looks Like TOTAL APPROPRIATION FOR CATEGORY 06 EDUCATION AS INCLUDED IN SECTION 1. 06 ESTIMATED SOURCE OF FUNDS FOR CATEGORY 06 EDUCATION AS INCLUDED IN SECTION 1. 06 FEDERAL FUNDS OTHER FUNDS GENERAL FUND SWEEPSTAKES FUNDS TOTAL APPROPRIATION AS INCLUDED IN SECTIONS 1. 01 THRU AND INCLUDING 1. 06 ESTIMATED SOURCE OF FUNDS AS INCLUDED IN SECTION 1. 01 THRU AND INCLUDING 1. 06 FEDERAL FUNDS OTHER FUNDS GENERAL FUND HIGHWAY FUNDS FISH AND GAME FUNDS SWEEPSTAKES FUNDS TURNPIKES FUNDS TOTAL 1458, 949, 429 1470, 180, 444 247, 118, 324 966, 347, 656 237, 302, 514 8, 180, 935 246, 840, 903 969, 827, 486 245, 351, 289 8, 160, 766 1458, 949, 429 1470, 180, 444 5111, 164, 942 5236, 012, 880 1478, 263, 227 1694, 862, 406 1563, 832, 988 276, 455, 391 12, 364, 494 8, 811, 202 76, 575, 234 5111, 164, 942 1507, 005, 507 1716, 948, 101 1625, 753, 043 286, 354, 455 12, 562, 280 8, 810, 152 78, 579, 342 5236, 012, 880 8

What the Budget Looks like, 2 HB 0001 PAGE 456 06/22/07 FISCAL YEAR 2009 ------06 EDUCATION 03 DEPARTMENT OF EDUCATION 02 OFFICE OF THE DEP COMMISSIONER 02 FINANCIAL AID TO DISTRICTS-ST. 05 ADEQUATE EDUCATION GRANTS 90 HARDSHIP GRANTS 5, 000 91 ADEQUATE EDUCATION GRANTS 890, 360, 565 92 CHARTER SCHOOL TUITION 2, 377, 579 ---- FISCAL YEAR 2008 ------- F 5, 000 890, 360, 565 1, 779, 840 TOTAL 897, 738, 144 ESTIMATED SOURCE OF FUNDS FOR ADEQUATE EDUCATION GRANTS 09 AGENCY INCOME 897, 738, 144 TOTAL 897, 738, 144 >>>>>>>>>>>>>>>>> TOTAL ESTIMATED SOURCE OF FUNDS FOR OFFICE OF THE DEP COMMISSIONER FEDERAL FUNDS GENERAL FUND OTHER FUNDS TOTAL ---- 897, 140, 405 988, 861, 604 991, 740, 026 900, 901 90, 709, 723 897, 250, 980 988, 861, 604 945, 946 92, 939, 021 897, 855, 059 991, 740, 026 9

How Big is the Budget? o Total $10. 3 billion – 2 years n n n n General Fund - $3. 2 B – 31% Federal Funds - $2. 98 B – 29% Education Fund - $1. 8 B – 17% Other “Other Funds” - $1. 6 B – 15% Highway Fund - $562 M – 5. 4% Turnpike Fund - $155 M – 1. 5% Fish and Game - $25 M – 0. 2% 10

Spending Trends o o o o How to Measure? Over Twenty years: General Fund – 5. 1% annual Biennial increase ave. 10. 4% GF + ETF 9 yr ave. – 3. 5% Inflation 20 yr – 3. 0% 1989 adjusted – 1, 065, 399 11

How do we Balance? o o o Surplus Statement Budget minus lapses (net approp. ) Unrestricted revenue Fund balance plus ETF surplus Two year total not each 12

Rainy Day Fund o o Revenue Stabilization Reserve Account Surplus in, deficit out When does it rain? RSA 9: 13 -E Suspended last 2 budgets 13

Other Funds o Highway n n n o Constitution – gas tax Gas – $137 M (16 of 18) Registrations $75 M, other $37 M Where is the turnpike? Highway Spending Cap Fish and Game 14

Is there a current deficit? o o o Revenue: $71. 8 + $100 Spending: Executive Orders Lapses School Construction Revenue Changes Balance 2008 v. 2009 15

The New Legislature, 2009 o o October 1, 2008 Tentative Budget Governor’s Address Starting point: $300 M? 16

Information where? o o Monthly Revenue and Historical (Administrative Services) http: //admin. state. nh. us/accounting/ reports. asp Budget Document (Legislative Budget Office – LBA) http: //www. gencourt. state. nh. us/lba/ indexbudget. html 17